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Earnings season is nearing its end after more than a month of investor excitement and disappointment. While most of the health care sector has already reported earnings, the largest pure medical device company, Medtronic, Inc. (NYSE:MDT), came up to bat with its third-quarter report on Tuesday. The company’s stock didn’t react very well — shares fell 2.8% during the day — but what should you take away from this medical device leader’s earnings?

Just the basicsFirst, some good news: Medtronic’s earnings did rise nearly 6% for the third quarter, with net profit coming in at $988 million. The company recorded earnings per share of $0.93 excluding one-time items; together, these figures jumped considerably from last year’s $935 million and $0.88 per share. Furthermore, Medtronic’s earnings beat analyst estimates, which had projected $0.91 in quarterly EPS.

Medtronic retained its EPS guidance of $3.66 to $3.70 for the current full year, and investors got an added benefit later in the day. The company’s leadership told analysts that the medical device excise tax now in effect will take less of a bite out of the company’s finances than earlier predicted. While Medtronic had estimated $50 million in tax-related costs in 2013, it now projects between $20 million and $25 million to cover the tax based upon a slower ramp-up of the measure than had been predicted. It’s an improvement that shareholders will no doubt embrace.

Revenue also managed to rise for the quarter, gaining 4% to reach just over $4 billion. So, where did the company hit all the marks — and where does it need to turn things around?

Europe weighs in on growthMedtronic’s quarter wasn’t all roses. Europe, which has hit medical device companies hard as it contends with its fiscal crisis, continued to weigh on the company’s sales. Revenue from the continent fell around 1% after gaining the prior three quarters, a troubling trend considering that Europe accounts for around a fourth of Medtronic’s revenue.

Despite Europe’s woes, however, Medtronic is still handling international sales well. The company’s international segment saw total revenue growth of 7% on a constant currency basis, and emerging market sales grew by 20% before currency fluctuations were taken into account. Growth in developing economies will help Medtronic keep up with rivals; competitor Abbott Laboratories (NYSE:ABT) has followed a similar path already in securing future growth by spreading into developing nations. With around 46% of Medtronic’s revenue derived from sales abroad, emerging markets will become more important as Europe continues to slide.

CEO Omar Ishrak said all the right things to believe he’ll keep expanding the company abroad, saying, “We remain committed to delivering dependable growth in a changing health care environment…We are playing a leading role in transforming global health care by implementing our long-term strategies of economic value and globalization.”

Good times outside of the U.S. for Medtronic, even with Europe on the retreat… but not all of the company’s divisions are sharing the joy.